Money supply

Which of the following would cause a decrease in the money supply? I. New issues of T-bills sold to the public. II. reduced discount rate. III. lower reserve requirements. A. I only. B. II and III. C. all of them. D. none of them.

B

A ) the other two would increase the money supply!!!

B

A. I only.

hhahahaha read the Q wrong again! thought it was increase A

A

getterdone Wrote: ------------------------------------------------------- > hhahahaha read the Q wrong again! thought it was > increase > > A Me tooo!! WFT! :slight_smile:

sorry u r all wrong ! D’artagnan = confidence breaker = most hated guy on AF L1 tonight

I think its D

Should be C

Nope, I’m not chaning my answer. It is A.

Dreary Wrote: ------------------------------------------------------- > Nope, I’m not chaning my answer. It is A. New issues of T-bills sold to the public is conducted by US Treasury, and this would not impact the money supply! since US treasure plays same role as any company or individual in money supply Buying and selling of US securities by the Fed would imapct it. II and III would increase money supply. yep, I know what u fell … source: stalla 2007 …

what’s this question’s number? I might retrieve it in the Passmaster

Wow, that was a good question. Thanks… I needed this reminder.

map1 Wrote: ------------------------------------------------------- > what’s this question’s number? I might retrieve it > in the Passmaster sorry map, I got print out …

I say A